U.S. Treasury Sells General Motors Stock for $34.41 per Share
The U.S. Treasury Department has put its 30 million General Motors stocks up for sale at $34.41 a share as the agency intends to dispose of company holdings and save taxpayer money.
The sale of the bailed-out company, which has just made its way to the Standard & Poor's 500 index, will generate $32.53 billion for the U.S. taxpayers. However, that amount is 34 percent lower than the initial target of $49.5 billion in bailout value, though it represents a $1.03 billion bump.
The Treasury plans to sell additional shares at $89.69 each to move out of the company by April 2014. The department will still own 189.2 million GM shares even after its current bid.
Officials from the Treasury Department see the divestiture as a way to save jobs and keep the country's auto industry viable compared to higher losses when GM stumbles. The company's return to the S&P index indicates a rise in demand for GM stock.